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American Airlines to Suspend Flights to 15 U.S. Airports

American Airlines Group Inc AAL plans to suspend flights to 15 U.S. airports in October as air-travel demand continues to be weak due to the ongoing coronavirus concerns.  The service cuts have been decided by keeping in mind the approaching expiration of the minimum-service requirement under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act on Sep 30. Notably, American Airlines received $5.8 billion in payroll assistance under the CARES Act.

The airline will suspend services to Del Rio, TX (DRT); Dubuque, IA (DBQ); Florence, SC (FLO); Greenville, NC (PGV); Huntington, WV (HTS); Joplin, MO (JLN); Kalamazoo/Battle Creek, MI (AZO); Lake Charles, LA (LCH); New Haven, CT (HVN); New Windsor, NY (SWF); Roswell, NM (ROW); Sioux City, IA (SUX); Springfield, IL (SPI); Stillwater, OK (SWO); and Williamsport, PA (IPT). Approximately 700 flights to and from these airports will be suspended starting Oct 7 through Nov 3.

According to a statement provided by American Airlines, “The airline will continue to re-assess plans for these and other markets as an extension of the Payroll Support Program remains under deliberation.”

American Airlines Group Inc. Price

American Airlines Group Inc. Price

American Airlines Group Inc. price | American Airlines Group Inc. Quote


It’s been a while since the Congress  initiated discussions to decide whether U.S. airlines should be granted another $25 billion in payroll assistance so that thousands of airline workers could be kept employed (per the terms of the CARES Act, airline employees cannot be laid off until Sep 30) and minimum flight-service requirements can be extended. American Airlines gave a heads up that the flight cuts could increase if the Congress’ decision isn’t favorable.

Zacks Rank & Key Picks

American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Canadian Pacific Railway Limited CP, Knight-Swift Transportation Holdings Inc KNX and Werner Enterprises Inc WERN. While Knight-Swift and Werner Enterprises sport a Zacks Rank #1 (Strong Buy), Canadian Pacific carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Canadian Pacific, Knight-Swift and Werner Enterprises have rallied 17.2%, 30.6% and 28.7% so far this year, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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